Gold Price Steady-Weak in Thin Pre-Holiday Trading

New York (Dec 22) Gold is steady to slightly lower in quieter dealings Tuesday. There were no major economic reports or other developments overnight to shake up the marketplace. Trading volumes are thinning as this holiday-shortened trading week progresses. The markets are closed on Friday for the Christmas holiday. February Comex gold was last down $0.80 at $1,079.90 an ounce. March Comex silver was last up $0.03 at $14.345 an ounce.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the gross domestic product report, the Richmond Fed business survey, the U.S. house price index and existing home sales.

Technically, gold bears have the solid overall near-term technical advantage. However, if the gold bulls can put together a good upside week this week, then the specter arises for a bullish “double-bottom” reversal pattern forming on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the December high of $1,088.30. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at the contract low of $1,045.40. First resistance is seen at Monday’s high of $1,081.40 and then at $1,088.30. First support is seen at $1,070.00 and then at Monday’s low of $1,063.10. Wyckoff’s Market Rating: 2.0

Silver bears have the firm overall near-term technical advantage. However, prices hit a two-week high overnight and the recent choppy trading at lower price levels begins to hint of a near-term low. However, the bulls need to show more power soon to better suggest such. Bulls’ next upside price breakout objective is closing December futures prices above solid technical resistance at the December high of $14.64 an ounce.